US deal won't create new jobs: Holden

The Holden factory will produce thousands of Commodores for the American market, securing jobs at the Adelaide plant. But Holden says the extra business will not lead to new jobs.

Transcript

ALI MOORE: Jobs at the Holden plant at Elizabeth in Adelaide are more secure tonight, thanks to a major export deal with the United States. The factory will produce thousands of Commodores for the American market but Holden says the extra business won't lead to new jobs. Kerry State with this story.

KERRY STATE: Holden today unveiled the car it hopes will help turn around last year's financial loss. A VE Commodore, rebadged as a Pontiac G8 for the US market.

COMPANY VIDEO: We have got to have exports if we’re going to survive.

KERRY STATE: At the moment, Holden exports most of its cars to the Middle East but that's set to change next year, when between 30,000 to 50,000 Commodores roll out of its Elizabeth plant and into American hands.

KEVIN FOLEY, SA DEPUTY PREMIER: This decision today will guarantee long term stability and security for General Motors and the thousands of south Australians who are employed in the automotive industry.

KERRY STATE: The Manufacturing Workers' Union says the deal is a step in the right direction but will only provide job security if the cars sell. Holden's last export to the US, the Monaro, fell short of sales expectations.

JOHN CAMILLO, MANUFACTURING WORKERS UNION: Hopefully with this VE that Holden has spent nearly $1 billion in producing the VE, it might be more of a success story.

KERRY STATE: Full production on the model will be under way by the end of the year.